Simbisa seeks regulatory approval for secondary listing on London AIM
THE Zimbabwe Stock Exchange (ZSE)-listed quick service restaurant business, Simbisa Brands is seeking regulatory approval for a secondary listing on the Alternative Investments Market in London as part of its capital raising initiative.
Simbisa Brands is a subsidiary wholly-owned by a leading conglomerate, Innscor Africa Limited.
In a cautionary statement yesterday, Simbisa Brands reminded shareholders that its board has approved an application for secondary listing on Alternative Investments Market (AIM).
“Shareholders are reminded that the Simbisa Brands Limited board of directors has approved, subject to Reserve Bank of Zimbabwe, other regulatory approvals and shareholders’ approval, the application for a secondary listing of Simbisa’s ordinary share capital on the London Stock Exchange AIM in order to access additional funding for the company’s expansion,” it said.
The company said further to the expansion initiative, shareholders were also advised that Simbisa was presently negotiating for the acquisition of an international complementary business.
“Shareholders will be provided with more details regarding the transactions by way of a circular in due course.
“Accordingly shareholders are advised to exercise caution and should consult their professional advisors before dealing in the company shares.”
Brands within the Simbisa portfolio include Chicken Inn, Pizza Inn, Creamy Inn, Baker’s Inn, and Fish Inn.
The quick service restaurant entity was listed on the ZSE as a separate entity in November 2015 to promote investment flexibility in the stand-alone entity.
Simbisa Brands acquired through scheme of reconstruction all the assets and liabilities of the quick service restaurant business from Innscor in exchange for 541 593 440 ordinary shares of $0.0001 nominal value on the ZSE.
In addition, the principal reasons for the unbundling of Simbisa Brands and its listing on the ZSE among others were to unlock value for the shareholders and enhancing the ability of the operation to pursue strategies that maximise shareholder value.
The strategy is aimed at creating a clear operational focus with a view of attracting investors.
Innscor Africa’s quick service restaurant business, opened its inaugural Chicken Inn outlet in Harare in 1987.
Over the years, the business unit has expanded to over 170 outlets in Zimbabwe and more than 209 outlets in the region through the addition of new brands and the franchising of existing brands through third-party licences.
In 1998, Innscor listed on the ZSE, utilising the quick service restaurant operation to spread its footprint into Africa as a diversified Pan-African operation with outlets being opened in Zambia, Kenya, the Democratic Republic of Congo, Ghana, Malawi, Namibia, Botswana, Mauritius, Swaziland and Lesotho. — @okazunga